What Is My Tax Bracket in New Jersey?

New Jersey employs a progressive income tax system, where the rate of taxation increases as a taxpayer’s income rises. Understanding how this system works and which tax bracket your income falls into is a key part of managing your finances and anticipating your annual state tax obligation.

Determining Your New Jersey Taxable Income

Before you can identify your tax bracket, you must first calculate your New Jersey taxable income. This process begins with determining your filing status, such as Single or Married Filing Jointly. Your filing status dictates the specific deductions, exemptions, and tax brackets that apply to your return.

Once your filing status is established, you compute your taxable income from your gross income after certain state-specific adjustments. Every taxpayer can claim a personal exemption of $1,000. Additional $1,000 exemptions are available if you are age 65 or older, or if you are blind or disabled, and you can claim a $1,500 exemption for each qualifying dependent.

New Jersey also offers specific deductions that can lower your income subject to tax. Homeowners can deduct up to $15,000 of the property taxes paid on their principal residence, while renters can claim a deduction where 18% of the rent paid is considered property taxes. Taxpayers can also deduct unreimbursed medical expenses that exceed 2% of their New Jersey gross income.

New Jersey Income Tax Brackets and Rates

With your New Jersey taxable income calculated, you can determine your marginal tax bracket. For the 2024 tax year, the income tax rates in New Jersey range from 1.4% to 10.75%. The state utilizes a graduated system with seven tax brackets for most filing statuses and eight for those who are Married Filing Jointly.

To find your bracket, use the tax rate schedule that corresponds to your filing status and locate the income range where your taxable income falls. For example, a single individual with a taxable income of $60,000 would use the “Single” schedule and fall into the 5.525% bracket. The next section explains how this marginal rate is used to calculate your total tax.

Below are the tax brackets for the 2024 tax year, for returns filed in 2025.

Single Filers

• 1.4% on income up to $20,000
• 1.75% on income from $20,001 to $35,000
• 3.5% on income from $35,001 to $40,000
• 5.525% on income from $40,001 to $75,000
• 6.37% on income from $75,001 to $500,000
• 8.97% on income from $500,001 to $1,000,000
• 10.75% on income over $1,000,000

Married Filing Jointly

• 1.4% on income up to $20,000
• 1.75% on income from $20,001 to $50,000
• 2.45% on income from $50,001 to $70,000
• 3.5% on income from $70,001 to $80,000
• 5.525% on income from $80,001 to $150,000
• 6.37% on income from $150,001 to $500,000
• 8.97% on income from $500,001 to $1,000,000
• 10.75% on income over $1,000,000

How to Calculate Your New Jersey Tax Bill

Identifying your tax bracket is only one part of the process; the final step is to calculate your total tax liability. New Jersey’s progressive tax system means you pay different rates on different portions of your income. You do not simply multiply your total taxable income by your top marginal tax rate. Instead, you calculate the tax for each bracket that your income passes through and then sum those amounts.

Consider a single filer with a New Jersey taxable income of $80,000. This places them in the 6.37% marginal tax bracket. However, only the income earned between $75,001 and $80,000 is taxed at that highest rate. The calculation breaks down the income into the portions that fall within each preceding bracket.

The tax calculation for this individual would be as follows:

• 1.4% on the first $20,000 = $280.00
• 1.75% on income from $20,001 to $35,000 = $262.50
• 3.5% on income from $35,001 to $40,000 = $175.00
• 5.525% on income from $40,001 to $75,000 = $1,933.75
• 6.37% on income from $75,001 to $80,000 = $318.50

Summing these individual tax amounts gives a total New Jersey tax liability of $2,969.75.